Prudential Risk

Liquidity Risk

SEBI Prescribes New Risk Management Norms for Liquid Funds

By Editors | 24/09/2019

From 1 April 2020, liquid and overnight funds must hold at least 20% of their net assets in liquid assets such as cash, government securities and treasury bills.

Emerging Prudential Risks

DTCC Calls on Industry to Prioritise Business Resilience Efforts

By Editors | 24/09/2019

Firms must establish resilience as a business-owned strategic initiative, and be willing to prioritise business resilience over efficiency in some cases, says a new DTCC whitepaper.

Capital Adequacy

Chinese Banks Rush to Issue Perpetual Bonds – Report

By Editors | 23/09/2019

Nine of China’s banks have issued perpetual bonds worth about 410 billion yuan so far, and another eight are preparing to raise another 400 billion yuan.

Credit Risk

Bangladesh Banks Face Capital, Provisioning Shortfalls

By Editors | 20/09/2019

Recent policies to help delinquent borrowers have incentivised good borrowers to default, leading to a rise in NPLs that is threatening to overwhelm banks.

Credit Risk

Vietnam Banks Ordered to Control Loans Backed by Savings Book

By Editors | 20/09/2019

The SBV says banks may not allow borrowers to use long term savings books as collateral for loans if they have no plans to use the capital.

Emerging Prudential Risks

Financial Firms Largely Unprepared for LIBOR Transition: Survey

By Editors | 19/09/2019

Although 84% of financial firms have a formal LIBOR transition plan in place, only 18%of them describe their programmes as ‘mature’, according to a new Accenture report.

Conduct, Culture & Accountability

RBNZ, FMA Unimpressed by Insurers’ Inaction on Conduct Risk

By Editors | 18/09/2019

RBNZ governor Adrian Orr says the sector has failed to demonstrate the necessary urgency and prioritisation to provide effective governance and monitoring of conduct risk.

Credit Risk

RBI Increases Bank Exposure Limit to NBFCs

By Editors | 17/09/2019

The move aligns bank exposure limits for NBFCs with limits applicable for other types of counterparties, but Fitch says it is unlikely to lead to significant credit flows to the sector.

Emerging Prudential Risks

Moody’s Becomes Second Agency to Downgrade Hong Kong Outlook

By Editors | 17/09/2019

Moody’s says the downgrade of Hong Kong’s outlook to negative is the result of a shift in its equilibrium with China, in addition to the ongoing protests in the city.